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Basic Net SpA Earnings Release 2021
4229_rns_2022-02-10_8b4a2bcc-98a0-4e82-b9b5-df3678c11b7d.pdf
Earnings Release
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FY2021 Results Conference call
February 10th 2022
FY2021 Highlights
Aggregated sales of licensees continued to grow in Q4 (+17,9% YoY). Strong consolidates revenues in 2H21 led to higher FY EBITDA vs 2019. NFP decreased to a record low of € 61,7m vs YE2020 (€ 82,2m).
12m aggregated sales amounted to € 949m (+16,6% YoY), led by aggregated sales of licensees (ASL) up 17,9% YoY. Aggregated sales of sourcing centers (ASSC) grew by at +13,1% YoY with a robust Q4.
Consolidated revenues amounted to € 296m (+14,1% YoY). Direct sales of goods (+13,0% YoY) were bolstered by a strong performance in Q4 (+20% vs 4Q19), both in Italy and at Kappa Europe.
EBITDA amounted to € 44,2m (€ 19,8m in 2020, € 42,5m in 2019) driven by higher sales volumes in all geographies of Group's direct operations, despite point of sales closures in 1Q21 due to Covidmeasures and shipping disruptions in the market throughout the year.
Net Financial Position, at € 61,7m by YE, reduced to below pre-Covid net debt, thanks to € 35,5m free cash flow generation in 2021.
€ 949m Aggregated Sales
€ 296m Consolidated Revenues
€ 44,2m EBITDA
€ 61,7m NFP
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AGGREGATED SALES
BY QUARTER
Aggregated Sales of Sourcing Centers (ASSC, € m)
Aggregated Sales of Licensees (ASL, € m)
Q1 Q2 Q3 Q4
BY NATURE BY QUARTER
Consolidated sales of goods (€ m)
Royalties income ASSC (€ m)
Royalties income ASL (€ m)
Q1 Q2 Q3 Q4
2021 EBITDA Bridge
in € million
- Contribution margin: higher contribution margin mainly driven by strong sales growth in Italy and at Kappa Europe (overall +13%). Margins remained overall stable despite the increase of freight, shipping costs and raw materials.
- Royalties and sourcing: strong increase in both royalties from ASL (€ +5,6m), led by organic growth, and ASSC (+€ 3,2m, partially driven by higher royalty rates). Royalties from ASL were back to 2019 levels (€ 38,5m).
- Labour cost: slightly increased, mostly due to lower temporary layoffs vs last year.
- Sponsorship and media: lower costs of sponsorship agreements, mainly due to re-negotiations to account for the impact of covid-19 in H1 and to substitution of sponsored teams.
- Other: mainly re-negotiations of leases for shops closed during the period (€ +0,5m) and lower bad debt provision (€ +4,5m).
FY21 quarterly EBITDA
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| in € .000 | 31.12.21 | 31.12.20 | 31.12.19 |
|---|---|---|---|
| Net Cash | 6.325 | (6.266) | (27.040) |
| ST portion of MT Loans | (9.243) | (8.412) | (9.169) |
| MT Loans | (34.783) | (44.387) | (19.939) |
| IFRS 16 debt | (24.041) | (23.097) | (19.287) |
| Payables for the acquisition of shares | - | - | (2.839) |
| Net Financial Position | (61.743) | (82.162) | (78.274) |
| Equity | 133.710 | 119.276 | 121.741 |
| NFP/Equity | 0,46 | 0,69 | 0,64 |
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| in € million | 12m 2021 | 12m 2020 | 12m 2019 |
|---|---|---|---|
| Consolidated revenues | 296,4 | 259,7 | 305,7 |
| EBITDA | 44,2 | 19,8 | 42,5 |
| EBITDA margin | 14,9% | 7,6% | 13,9% |
| EBIT | 31,6 | 7,6 | 30,6 |
| EBIT margin | 10,7% | 2,9% | 10,0% |
| Free cash flow | 35,6 | 10,5 | 6,8 |
| Trade Working Capital | 50,0 | 59,3 | 88,8 |
2021 NFP Bridge
in € million
2020 WALK 2021 WALK
▪ Operating activities: positive cash flow. Continuous improvement in net working capital management.
- Investing activities: recurring capex (€ 5,9m), renovation works at BasicVillage Milano (€ 3,4m), repurchase of K-Way rights in China (€ 1,1m).
- Financing activities: mainly dividend payment (€ 3,1m), own shares buy-back (€ 6,0m), additional IFRS 16 debt for new shops-related leases (€ 6,0m).
▪ Operating activities: positive cash flow through a positive EBITDA and careful management of trade working capital.
- Investing activities: recurring capex (€ 7,1m), cash-out for the completion of Kappa Europe acquisition, BasicVillage Milano acquisition (€ 10,5m), acquisition of Kappa brand in Japan (€ 10,9m).
- Financing activities: dividend payment (€ 6,4m), differential impact of new leases (IFRS 16) on debt net of rent concessions-
Back-Up
4Q 2021 Communication activities
4Q 2021 Communication activities
Glossary
| Aggregated Sales of Licensees (ASL) | sales by commercial licensees |
|---|---|
| Aggregated Sales of Sourcing Centers (ASSC) |
sales by productive licensees |
| Consolidated revenues | the sum of royalties income from ASL, sourcing commissions from ASSC and direct sales of goods |
